Sideways movement may continue

The market is likely to witness sideways movement on the back of a strong intra-day volatile moves. Stocks across sectors along with heavyweights may gyrate sharply. Overnight weakness in the US indices and mixed Asian markets in mornings trades may further dampen the investors' sentiment. On the technical side, the Nifty has a stiff resistance at 4965 and the downside cap at 4880, while the Sensex could test higher levels of 17300 and has a likely support at 16300.

US indices registered steady losses on Monday as Dow Jones dropped 61 points to close at 13759, the Nasdaq fell three points at 2668. Most of the Indian ADRs were gainers on the US bourses. Rediff rallied sharply and soared over 7.32% followed by VSNL gained 3.29% while Wipro, ICICI Bank, HDFC Bank, MTNL ,Tata Motors andDr Reddy ended with steady gains. Satyam fell sharply and tumbled over 4.61% and Infosys declined by 1.39%, while Patni Compuetrs and Wipro ended with marginal loss.

Crude oil prices dropped marginally on Monday. The Nymex light crude oil for November delivery slipped by 67 cents to close at $80.95. In the commodity space, the Comex gold for December series advance by a 40 cents to settle at $739.30 a troy ounce.